Hoosier Manufacturing Company Uses Three Different Independent Variables Machine Hours Number Of Packages Labor Hours 1 (57.47 KiB) Viewed 24 times
Hoosier Manufacturing Company Uses Three Different Independent Variables Machine Hours Number Of Packages Labor Hours 2 (27.83 KiB) Viewed 24 times
Hoosier Manufacturing Company uses three different independent variables (machine-hours, number of packages, labor hours) in three different equations to predict costs of the Packaging Department. The most recent results of the three regressions are as follows: Regression model using the number of machine-hours as the independent variable: Variable Coefficient Standard Error p-Value Constant 748.30 441.20 0.19 # of Machine-hours 52.90 55.20 0.50 Standard Error of the Regression = 1,000 = p2 = 0.75 Regression model using the number of packages as the independent variable: Variable Coefficient Standard Error p-Value Constant 242.90 25.04 0.04 # of Packages 5.60 1.20 0.02 Standard Error of the Regression = 700 p2 = 0.73 Regression model using the number of labor hours as the independent variable: Variable Coefficient Standard Error p-Value Constant 258.30 241.20 0.19 # of Labor-Hours. 42.90 15.20 0.01 Standard Error of the Regression = 1,000 r2 = 0.71
Assuming the company had 400 machine hours, 4,675 packages, and 575 labor hours. What would the BEST estimate for total manufacturing (fixed + variable) costs be using the optimal model out of the three models above (~ approximately). O -26,423 O -24,926 O -21.908 O None of the provided solutions represent an approximate total cost. - 27.116
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